Correlation Between Fidelity Metaverse and ProShares Metaverse
Can any of the company-specific risk be diversified away by investing in both Fidelity Metaverse and ProShares Metaverse at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidelity Metaverse and ProShares Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Metaverse ETF and ProShares Metaverse ETF, you can compare the effects of market volatilities on Fidelity Metaverse and ProShares Metaverse and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Metaverse with a short position of ProShares Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Metaverse and ProShares Metaverse.
Diversification Opportunities for Fidelity Metaverse and ProShares Metaverse
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and ProShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Metaverse ETF and ProShares Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Metaverse ETF and Fidelity Metaverse is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidelity Metaverse ETF are associated (or correlated) with ProShares Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Metaverse ETF has no effect on the direction of Fidelity Metaverse i.e., Fidelity Metaverse and ProShares Metaverse go up and down completely randomly.
Pair Corralation between Fidelity Metaverse and ProShares Metaverse
Given the investment horizon of 90 days Fidelity Metaverse is expected to generate 2.98 times less return on investment than ProShares Metaverse. But when comparing it to its historical volatility, Fidelity Metaverse ETF is 1.08 times less risky than ProShares Metaverse. It trades about 0.06 of its potential returns per unit of risk. ProShares Metaverse ETF is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,470 in ProShares Metaverse ETF on August 28, 2024 and sell it today you would earn a total of 216.00 from holding ProShares Metaverse ETF or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Metaverse ETF vs. ProShares Metaverse ETF
Performance |
| Timeline |
| Fidelity Metaverse ETF |
| ProShares Metaverse ETF |
Fidelity Metaverse and ProShares Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Metaverse and ProShares Metaverse
The main advantage of trading using opposite Fidelity Metaverse and ProShares Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Metaverse position performs unexpectedly, ProShares Metaverse can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ProShares Metaverse will offset losses from the drop in ProShares Metaverse's long position.| Fidelity Metaverse vs. Fidelity Crypto Industry | Fidelity Metaverse vs. Fidelity Covington Trust | Fidelity Metaverse vs. ProShares Metaverse ETF | Fidelity Metaverse vs. Fidelity Covington Trust |
| ProShares Metaverse vs. Invesco DWA Utilities | ProShares Metaverse vs. Invesco Dynamic Large | ProShares Metaverse vs. Invesco Dynamic Large | ProShares Metaverse vs. HUMANA INC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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